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M. P. Evans Group (MPE)

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MP Evans' increase in production fails to boost profits

17 Sep 18

LONDON (ShareCast) - (Sharecast News) - Indonesian palm oil producer MP Evans on Monday reported that its half-year profits decreased despite a 27% increase in production to 91,900 tonnes.
For the six months ended 30 June, the firm's operating profit decreased by 39% to $10.1m after a 10% drop in the average price of crude palm oil to $663 per tonne and a $4.1m loss attributable to unrealised foreign currency exchange.

Peter Hadsley-Chaplin, chairman of MP Evans, said: "With crops 27% higher in the first half of 2018 than last year, the Group is visibly delivering the expected growth in crops as its young plantings mature and its hectarage continues to increase."

Hadsley-Chaplin added that the firm had reduced production costs but still had not managed to offset the reduction in oil prices.

Due to 2017's $68m disposal of the Agro Muko joint venture, MP Evans total profit fell from $82.4m over the period last year to $5.8m.

The AIM traded firm's cash and cash equivalents stood at $35.1m at 30 June, down from $148.5m last year, while the interim dividend remained at 5.00p per share.

A statement from MP Evans said that the increasing maturity of its newer projects alongside good progress on planting in South Sumatra provides the basis for considerable future crop growth and rising revenue, even without the acquisition of any further hectarage.

The firm now plans to increase the 81% of its production that is certified sustainable palm oil as it constructs its own mills and works with third-party smallholders, setting its sights on certifying all production other than its Simnang Kiri site by the end of 2023.

MP Evans' shares were down 0.26% at 754.00p at 1229 BST.

Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.


Market Data

Currency UK Pounds
Price 686.00p
Change Today 0.000p
52 Week High 750.00p
52 Week Low 612.00p
Volume 6,729
Shares Issued 54.44m
Market Cap 373.49m


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